One of the many draws of off-campus rentals for juniors and seniors is their relative affordability compared with on-campus housing fees. But as College Hill landlords are faced with increasing property taxes, tenants may have a harder time finding affordable housing.
Last year, the city discontinued tax cuts for landlords that has given them a 33 percent exemption on the appraised value of their property.
Peter Allen PhD'74 P'10, a College Hill landlord for 36 years who currently leases 15 apartments in the area, said he has not passed the tax increase on to his current tenants, though a clause in his lease enables him to do so legally. He added that his landlord association plans to negotiate a rollback with the city.
Gail Medbury, director of University auxiliary housing, said it has become more expensive to own property and students may see rates go up as a result.
But some students say rising rates would cause them to reconsider the decision to move off-campus.
"When you live off-campus, you have to purchase a bed and a desk and kitchen supplies that you don't have to worry about when living on campus," said Christina DeBenedictus '12. "So if rates were to go up, it would become much less affordable, and a lot less worth the time that you may put into it."
"For me the draw is affordability. The main reason why I live off campus is because it's cheaper," said Michael Gray '11.5.
"If it was more expensive than dorms, I'd probably still be in the dorms," said Caitlin Stone '12. "But since it's not, I live off-campus."
Despite potential rent hikes, the market for off-campus rentals is as thriving and competitive as ever. Housing groups have been signing leases progressively earlier in the semester in recent years, and this year's students have been the earliest yet by some landlords' accounts.
"This has been a really strong rental year," said Emma Baskin of Bright Lights Property Management, a Massachusetts-based company that manages several units on College Hill. The company's units on Thayer, Benefit and Angell streets were all rented for next year by Labor Day weekend.
"I'm quite pleased," said Baskin, who said she was surprised by the influx of early leases. She said a lot of students are aware that city of Providence taxes have gone up, and are looking for housing earlier to make sure they get something affordable.
But for now, Baskin said rates for renters have gone up only "marginally" despite the fact that property owners are now paying taxes on 75 percent of the value of their holdings.
"I might consider an increase next year," Allen said. "I have to keep my eye on the national economy, so I'll play it by ear."
— Additional reporting by Aasha Jackson
